A mortgage adviser has said that no other Irish based bank will follow the lead of ICS Mortgages who announced this week that it will cap the size of new home loans at two and a half times income.

Michael Dowling, managing director of Dowling Financial, is confident, however, that this decision will not set a trend that other financial institutions will follow.

"There is no intention that you will see any other bank repeat what ICS announced yesterday," Mr Dowling told RTE's News at One.

"The maximum loan to income ratio they will apply is two and a half times salary whereas the Central Bank guideline is three and a half times salary and there are exceptions beyond that," he said

ICS has also reduced the loan to value ratio for first time buyers to 80% and down to 70% for second time buyers, Mr Dowling explained.

"There are eight banks in the market but three of those are part of the AIB Group. ICS in making that announcement are effectively closed for business until they make those changes so it is reducing the choice available to borrowers," Mr Dowling said.

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